A budget is a plan you write down to decide how you will spend your money each month.
A budget helps you make sure you will have enough money every month. Without a budget, you might run out of money before your next paycheck.
A budget shows you:
A budget helps you decide:
For example, your budget might show that you spend $100 on clothes every month. You might decide you can spend $50 on clothes. You can use the rest of the money to pay bills or to save for something else.
You might need money for an emergency. You also might need to buy something more expensive, like a car. Saving money might help you buy a car, put a security deposit on an apartment, or pay for something else expensive.Read more
Start a budget by gathering your bills and pay stubs. Think about how you spend money, besides paying your bills. For example, do you buy a cup of coffee every day? After a month, that coffee money could add up to an expense you might write down.
When you have your bills and pay stubs:
If the number is less than zero, you are spending more money than you make. Look for things in your budget you can change. Maybe something you do not need, or a way to spend less.
Use this Budget Worksheet to help you.
Some people do not get paid every month. If you expect things to be like they were last year, do this:
Last year my paychecks added up to $30,000.
$30,000 ÷ 12 = $2,500
I had about $2,500 each month.
A budget is something you use every month. A written budget will help you:
Your budget can help you save money for the future. You can make savings one of your expenses. You might find ways to spend less money. Then you can put money into savings every month – maybe into a bank or credit union.
It can be hard to save money. It is very hard when your expenses go up and your income does not. Here are some reasons to try to save money even when it is not easy.
You can try these ways to help save money:
What I did not buy this month:
|Top off gas tank||$15.00|
|Cups of coffee||$12.00|
|What I saved this month:||$72.00|
A budget is a plan that shows you how you can spend your money every month. Making a budget can help you make sure you do not run out of money each month. A budget also will help you save money for your goals or for emergencies.
Write down your expenses. Expenses are what you spend money on. Expenses include:
Other expenses, like:
You might have bills that change every month. Look at what you paid for the same month last year. You might need $200 for your gas bill in January, but $30 in July.
Write down how much money you make. This includes your paychecks and any other money you get, like child support.
Subtract your expenses from how much money you make. This number should be more than zero. If it is less than zero, you are spending more money than you make. Look at your budget to see what you do not need or what you could spend less on.
You can use your budget every month: